There’s No Way to Spin It: Democrats SALT Repeal is a Hand Out to the Rich

There’s No Way to Spin It: Democrats SALT Repeal is a Hand Out to the Rich

By prioritizing SALT, it’s clear Democrat politicians prioritize their donors over everyone else.

December 15, 2021
There’s No Way to Spin It: Democrats SALT Repeal is a Hand Out to the Rich

Democrats are contemplating a change to their SALT deduction plan to only include households making just below $1 million per year but what they’ve yet to come to an agreement on is why they are trying to give a tax break to the wealthy, when many of them have made promises to do the exact opposite. 

One of those most in favor of repealing the SALT deduction is Rep. Mikie Sherrill who tweeted: “I’ve been clear from the beginning: no SALT, no deal.” Along with her New Jersey colleague Rep. Gottheimer, who tweeted: “No SALT, No Dice! Great news today as we fight to restore the State and Local Tax deduction. This will provide tax cuts to hard-working middle class New Jersey families — something I’ve been championing for years.” 

Except, it doesn’t provide a tax cut for middle class families. 

According to the Committee for a Responsible Federal Budget, even with changing the cap, “such a plan would be still be very costly and regressive, delivering the largest tax cut to very high-income households, including households with millions of dollars in assets and some with over $1 million per year in pre-tax income.”

It should also be noted that of those individuals reaping the benefits of repealing SALT, over 50 percent of this reduction would flow to taxpayers in just four states: California, New York, New Jersey, and Illinois.

Democrats for months have been claiming this as a big win for the middle class, when really it’s just another reason for wealthy blue state donors to give to back to those who scratch their back. The committee for a Responsible Federal Budget states:

For comparison, a middle-class family of four with one child under six would receive $2,600 on average from the extension of the expanded Child Tax Credit (CTC) included in the Build Back Better Act. In other words, a household making $900,000 per year would receive a tax cut from SALT relief over 13 times as large as the benefit a middle-class family might receive from extension of the expanded CTC.

Bottom Line: So the real question is, who do Democrats go to bat for when their seats are on the line? By prioritizing SALT, it’s clear Democrat politicians prioritize their donors over everyone else.